361 sats \ 4 replies \ @Krv 20 Dec 2023 \ on: John Carvalho and Liquid bitcoin
This is some kind of religious purism. The creators of Liquid aren't creating a new coin or a scaling solution. Liquid is a tool that enables actions using Bitcoin as the base value. It has trust tradeoffs in order to facilitate these tools.
It is most certainly a new coin. If their marketing department was clever enough to call it a "sidechain" that is a very different story.
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Certainly seems like a new coin, otherwise you could use BTC directly instead of needing to peg in. How is it different from any other wrapped BTC token?
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A significant difference is the Liquid network doesn't use yet another token to enrich investors. Instead it uses L-BTC natively and which cannot be printed out of thin air.
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Liquid network doesn’t use yet another token to enrich investors. Instead it uses L-BTC … <links to docs about transaction fees paid in L-BTC>
There’s no mining, only a trusted federation (aka Proof of Authority) that accepts transaction fees in the new token.
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